Tech giant Amazon has confirmed it will pay US $8.45 billion to secure ownership of one of Hollywood’s oldest studios MGM.
The purchase of MGM will enable Amazon to significantly bolster the content library on streaming platform Prime Video.
Prior to the sale, Foxtel and Stan had been conducting negotiations to secure a longterm content supply agreement with MGM.
MGM has nearly a century of filmmaking history. The studio’s library contains a vast catalog of more than 4,000 films including 12 Angry Men, Basic Instinct, Creed, James Bond, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and many other icons
Additionally the studio also owns a catalogue of 17,000 TV shows—including Fargo, The Handmaid’s Tale, and Vikings.
Announcing the deal, Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios said:
“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling.”
Kevin Ulrich, Chairman of the Board of Directors of MGM welcomed the deal stating:
“It has been an honor to have been a part of the incredible transformation of Metro Goldwyn Mayer. To get here took immensely talented people with a true belief in one vision. On behalf of the Board, I would like to thank the MGM team who have helped us arrive at this historic day,”
“I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”
Completion of this transaction is subject to regulatory approvals and other customary closing conditions.